Construction Loan Note Clause Samples
A Construction Loan Note is a legal instrument that outlines the terms and conditions of a short-term loan provided specifically to finance the construction of a property. This clause typically details the loan amount, interest rate, repayment schedule, and the conditions under which funds are disbursed during the construction process. For example, it may require periodic inspections before releasing additional funds or specify milestones that must be met. The core function of this clause is to clearly define the financial obligations and procedures for both the lender and borrower during the construction phase, thereby reducing misunderstandings and managing the risks associated with construction financing.
Construction Loan Note the promissory note executed by Borrower payable to Construction Lender to evidence the Construction Loan. Construction Mortgage: the Mortgage in favor of Senior Lender securing payment of the Construction Loan.
Construction Loan Note. $__________ April __, 2002 FOR VALUE RECEIVED, the undersigned, Louisiana Heart Hospital, LLC, a North Carolina limited liability company (the "Borrower"), promises to pay to the order of ______________________________ (the "Lender"), at the place and times provided in the Loan Agreement referred to below, the principal sum of ____________________ DOLLARS ($__________) or, if less, the principal amount of all Construction Loan Advances made by the Lender pursuant to that certain Amended and Restated Loan Agreement, dated as of April __, 2002 (as amended, restated, supplemented or otherwise modified from time to time, the "Loan Agreement") by and among the Borrower, the Lenders who are or may become a party thereto, as Lenders (collectively, the "Lenders"), and Bank of America, N.A., as Administrative Agent (the "Administrative Agent"). Capitalized terms used herein and not defined herein shall have the meanings assigned thereto in the Loan Agreement. The unpaid principal amount of this Construction Loan Note from time to time outstanding is subject to mandatory repayment from time to time as provided in the Loan Agreement and shall bear interest as provided in Section 3.1 of the Loan Agreement. All payments of principal and interest on this Construction Loan Note shall be payable in lawful currency of the United States of America in immediately available funds to the account designated in the Loan Agreement. This Construction Loan Note is entitled to the benefits of, and evidences Obligations incurred under, the Loan Agreement, to which reference is made for a description of the security for this Construction Loan Note and for a statement of the terms and conditions on which the Borrower is permitted and required to make prepayments and repayments of principal of the Obligations evidenced by this Construction Loan Note and on which such Obligations may be declared to be immediately due and payable. THIS CONSTRUCTION LOAN NOTE SHALL BE GOVERNED, CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF NORTH CAROLINA, WITHOUT REFERENCE TO THE CONFLICTS OR CHOICE OF LAW PRINCIPLES THEREOF. The Debt evidenced by this Construction Loan Note is senior in right of payment to all Subordinated Debt referred to in the Loan Agreement. The Borrower hereby waives all requirements as to diligence, presentment, demand of payment, protest and (except as required by the Loan Agreement) notice of any kind with respect to this Construction Loan Note.
Construction Loan Note. An executed promissory note evidencing the Borrower’s obligation to repay Advances made pursuant to the Construction Loan, stating the interest rate and repayment requirements, and otherwise in form and content acceptable to the Bank.
Construction Loan Note. Borrower's obligations under the Construction Loan shall be evidenced by the Construction Loan Note.